- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
You never get a corrected w-2 for withdrawing excess contributions. you contact the trustee to withdraw the excess + earnings thereon. as you go through the interview steps there will be a question about withdrawing the excess by 4/18/2023. you answer that question by indicating the amount removed. you're done. if you remove the excess by 4/18/2023 there is no penalty.
your w-2 wages were reduced by your contributions to the HSA as such more than the allowable amount was deducted. so the excess will get added back to your income regardless of whether you withdraw the excess or not. if you don't withdraw the excess the penalty is 6% of the lower of the excess contribution or the Fair Market value of the HSA on 12/31/2022
don't withdraw more than required that is a nonqualifying distribution subject to a 20% penalty